While 401k investment plans are a nice way to save money for retirement, there are certain 401k rules on how much you can contribute to all of your plans collectively in a given year. The maximum 401k contribution limits change from one year to the next and apply as one figure for all of your plans, so your total must fall below the limit each year.
The maximum amount allowed to be contributed is different every person, depending on two different numbers. First, you have to determine what percentage of your income your employer’s plan will allow you to invest. This will be in percentage form. For example, someone who makes $45000 a year and has a plan that states they can contribute up to 10% of their income would be allowed to contribute up to $4, 500 in 2009. Continue reading ‘401k Rules FAQ – 401k Contribution Limits’ »